BTN Records Credit Disbursement Reaches IDR 356.1 Trillion In The Third Quarter Of 2024

JAKARTA PT Bank Tabungan Negara (Persero) Tbk or (BTN) in the third quarter of 2024 recorded lending and financing reaching Rp356.1 trillion or grew by 11.9 percent on an annual basis or year on year (yoy) compared to the same period last year.

President Director of BTN Nixon LP Napitupulu said this achievement was still recorded above the average credit growth of the national banking industry which reached 10.9 percent yoy.

Nixon conveyed that credit disbursement was increasing, supported by requests from KPR Subsidies and Non-Subsidized Mortgages, as well as the growth of third party funds (DPK) recorded above the national banking industry average.

"This achievement shows the core business of BTN which grows healthy and solid," he said in his statement, Thursday, November 28.

Nixon said that in 2024 it was quite a challenging year because national household consumption growth was stagnant and people's purchasing power weakened.

However, Nixon said that BTN was still able to maintain credit growth in accordance with the set target, namely at the level of 10 percent to 11 percent this year.

"In the midst of the challenges that occurred throughout 2024, the BTN's intermediation function continued to run optimally. This indicates that BTN is able to carry out one of its main tasks to help drive the economy and open loan access for people, especially those with low and middle income," he said.

Nixon said that BTN's credit growth was supported by increasing demand at mortgages, especially subsidized mortgages in line with the high need for decent and affordable housing in Indonesia. Currently, there are 24.6 million houses that are still relatively uninhabitable, with the number of national home ownership backlogs reaching 9.9 million.

Nixon said, KPR Subsidy still contributed the largest portion to the total BTN credit portfolio. Until September 2024, the company distributed KPR Subsidies of IDR 172.7 trillion, an increase of 9.5 percent yoy compared to the same period last year.

Nixon revealed that as many as 75 percent of BTN Subsidy KPR debtors are the Millennial group, which is a productive age category of around 21 years to 35 years.

"This indicates that the younger generation of Indonesia, especially those with low and middle income, still considers homes as one of the main needs and the trend will still increase along with national economic growth," said Nixon.

Meanwhile, for Non-Subsidized Mortgages, BTN also sees bright prospects based on the high interest of the community in the Emerging Affluent or KPR segment with a ticket size above IDR 750 million served by the company's Sales Center.

As for October 2024, Nixon said BTN had operated nine Sales Centers, with three of them located in an upper-middle area in Jakarta, namely Pantai Indah Kapuk, Pondok Indah, and Cibubur.

Nixon said customers who are served by Sales Center have a three-fold higher average savings balance than non-subsidized customers in general. Sales Center also contributed more than 20 percent of the total BTN Non-Subsidized KPR distribution.

"Looking at the positive prospects, we plan to add Sales Center to 15 offices by the end of 2025," said Nixon.

At the same time, continued Nixon, BTN recorded growth in the high-margin credit segment or high yield loan, which grew 20.1 percent yoy to IDR 15.9 trillion as of September 2024.

Nixon explained in detail, the growth of People's Business Credit (KUR) jumped 68.1 percent yoy, followed by Light Credit (KRING) of 18.1 percent yoy and Agunan Rumah Credit (KAR) of 10.9 percent yoy distributed to existing customers.

Along with the increase in lending, Nixon emphasized that BTN continues to apply strict caution and risk mitigation to maintain credit quality.

This can be seen from the gross ratio of non-performing loans (NPL) which fell to 3.2 percent in September 2024 compared to the same period last year at 3.5 percent.

"The NPL BTN level will continue to decline at the end of the year because we will complete the bulk asset sales in December with a value of around Rp. 1.1 trillion to Rp. 1.5 trillion," said Nixon.